What is the difference between old and new tax regime?

The old regime offers deductions like 80C, 80D, HRA but has higher base rates. The new regime has lower rates but most deductions are removed. Choose based on your deduction eligibility.

Which tax regime saves more money?

If your total deductions exceed 3.75 lakhs, the old regime usually saves more. For those with fewer deductions, the new regime with its lower slab rates is typically better.

What are the income tax slabs for FY 2026-27?

Under the new regime: Up to 4L - Nil, 4-8L - 5%, 8-12L - 10%, 12-16L - 15%, 16-20L - 20%, 20-24L - 25%, Above 24L - 30%. Standard deduction of 75,000 is available.

Is this calculator updated for 2026?

Yes, this calculator uses the latest FY 2026-27 tax slabs and rules as announced in the Union Budget, including updated standard deduction and rebate amounts.

How is income tax calculated on salary?

Gross salary minus exemptions (HRA, LTA) minus deductions (80C, 80D, NPS) gives taxable income. Tax is then calculated based on the applicable slab rates of your chosen regime.

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Income Tax Calculator — FY 2026-27

Quick Answer: Our Income Tax Calculator — FY 2026-27 provides instant, professional-grade results with zero data collection. Use this tool to plan your wealth, compare loan options, or estimate taxes with current 2026-27 rules. It uses the standard compounding formula A = P(1 + r/n)^(nt) for maximum accuracy.

Compare Old vs New regime side-by-side with 2026-27 slabs.

Quick Answer: Under the New Regime, income up to ₹12L is effectively tax-free (₹75K std deduction + ₹12L rebate u/s 87A). Most salaried individuals benefit from the New Regime.

🧾 Income Details

Annual Income₹12,00,000

₹0₹1 Cr

Deductions (Old: 80C, 80D, etc.)₹1,50,000

₹0₹5L

📋 Tax Comparison

New Regime

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Old Regime

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You Save

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📈 Income Tax Slabs — Old vs New Regime (FY 2025-26)

India offers two tax regimes. The New Regime (default from FY 2023-24) has lower rates but fewer deductions. The Old Regime allows deductions under 80C, 80D, HRA, etc.

Income Slab	New Regime Rate	Old Regime Rate
Up to ₹3,00,000	0%	0% (up to ₹2.5L)
₹3L – ₹7L	5%	5% (₹2.5L-5L)
₹7L – ₹10L	10%	20% (₹5L-10L)
₹10L – ₹12L	15%	30% (above ₹10L)
₹12L – ₹15L	20%	30%
Above ₹15L	30%	30%

Standard Deduction: ₹75,000 (New Regime) | ₹50,000 (Old Regime)

⚖ When to Choose Old vs New Regime

Scenario	Better Regime	Why
No investments/deductions	New	Lower rates save more
Home loan + ₹1.5L in 80C	Old	Deductions exceed rate benefit
HRA + 80C + 80D	Old	Heavy deductions win
Salary ₹7-10L, minimal deductions	New	Tax rebate up to ₹7L
Income above ₹15L + NPS	Calculate Both	Depends on actual deductions

Pro Tip: If your total deductions (80C + 80D + HRA + home loan interest) exceed ₹3.75 lakh, the Old Regime is usually better. Below that, the New Regime wins.

💰 Top Tax-Saving Deductions

Section	Deduction	Limit	Available In
80C	PPF, ELSS, Insurance, EPF	₹1,50,000	Old Only
80D	Health insurance premium	₹25,000-1,00,000	Old Only
24(b)	Home loan interest	₹2,00,000	Old Only
80CCD(2)	Employer NPS contribution	14% of salary	Both
HRA	House Rent Allowance	Varies	Old Only
Std. Deduction	Standard deduction	₹75,000 / ₹50,000	Both

❓ Frequently Asked Questions

Is the New Tax Regime better for salaried employees?

For salaried employees with minimal investments, the New Regime is usually better due to lower rates and ₹75,000 standard deduction. If you claim HRA, 80C (₹1.5L), and 80D deductions, calculate both to compare.

What is the tax rebate under Section 87A?

Under the New Regime, if your taxable income is up to ₹7,00,000, you get a full rebate — effectively paying zero tax. Under the Old Regime, the rebate limit is ₹5,00,000.

Can I switch between Old and New Regime every year?

Yes, salaried employees can switch between regimes every financial year. Business/professional income taxpayers can switch only once in their lifetime.

How is surcharge applied?

Surcharge applies on income tax (not total income): 10% for income ₹50L-1Cr, 15% for ₹1Cr-2Cr, 25% for ₹2Cr-5Cr (New Regime max 25%). Additionally, 4% Health & Education Cess applies on tax + surcharge.

Is my financial data safe on this calculator?

Absolutely. All calculations happen in your browser using JavaScript. No data is transmitted. Your income details stay 100% private on your device.

💡 About tax calculator

Professional-grade tax calculator tool designed for accuracy and privacy. Calcora provides expert-built utilities entirely free of charge with zero data collection.

All calculations happen instantly and locally within your browser, ensuring your data remains absolutely private.

❓ Frequently Asked Questions

Is my data stored on your servers?

No. Calcora tools run 100% client-side. No data is uploaded or stored on any external server.

Is this service free?

Yes, all tools on Calcora are completely free to use without any account or subscription.